Norway's Electric Vehicle Revolution: 90% of Cars Sold Are Now Electric

Norway has emerged as a global leader in electric vehicle (EV) adoption, with almost 90% of cars sold last year being electric. This significant shift, accelerated by public incentives and policies, was initiated in the 1990s. Norway abolished the road tax for electric vehicles in 1990 and eliminated VAT on these cars in 2001, making them more affordable than traditional petrol or diesel vehicles. Currently, Norway boasts the world's highest ratio of battery-powered cars to petrol cars. Despite facing a cold climate and low population density, the Nordic nation has successfully transformed its road transport system, aided by technological advancements. The number of electric vehicle models available has increased from fewer than 10 in 2014 to over 160 today, with Tesla now leading sales in the country. Public charging infrastructure has also improved, with 30,000 charging points available, making it the second-largest network in Europe relative to its population. Norway's government has set a target for all new vehicle purchases to be zero-emission by 2025, and while 100% may not be reached this year, sales of green cars are expected to exceed 95%. Norway’s scenario contrasts sharply with countries like Spain, where electric vehicle sales are only 5.8%. Barriers in Spain include cumbersome access to direct subsidies and a lack of compelling public incentives.

Norway has achieved a remarkable milestone, with nearly 90% of cars sold last year being electric, making it the world leader in road transportation electrification. This is the only country where battery-powered vehicles outnumber petrol ones on the roads. Norway’s shift to electric cars began in the 1990s but gained momentum due to a series of government incentives aimed at making electric vehicles more attractive than combustion cars. Key policies introduced over the decades include the elimination of road taxes for electric vehicles in 1990, free toll road access in 1996, and abolishment of VAT on electric cars in 2001, which significantly reduced their costs. For instance, a €40,000 utility vehicle would be priced at €50,000 if it were combustion-powered due to the 25% VAT. Public support has played a crucial role in this transformation, supported by the country’s substantial oil revenue. Technological advancements have also fueled growth, with over 160 electric vehicle models now available compared to fewer than ten in 2014. Norway boasts a robust charging infrastructure with 30,000 public charging points, the second-largest in Europe relative to its population. In 2017, the Norwegian parliament set a target for all new vehicle purchases to be zero-emission by 2025. While achieving the target may be challenging, current trends indicate that the percentage of green car purchases could exceed 95% of total sales this year. Diesel vehicles remain the most common, but their registrations have been declining. Compared to its European counterparts, the Nordic countries are leading the way in electric vehicle adoption, with Iceland at 71% and Sweden, Finland, and Denmark not far behind. In contrast, Spain's adoption rate stood at just 5.8% in 2024, hindered by cumbersome subsidy processes.

Norway, long regarded as the UK’s primary energy supplier, has issued a stark warning about the imminent decline of its oil and gas production. Recent findings from the Norwegian Offshore Directorate indicate that production peaked in 2024 and is projected to decrease significantly in the coming years. The report estimates production could drop from approximately 230 million standard cubic meters to as low as 110 million by 2035. This decline poses significant risks for the UK, which relied on Norway for over 50% of its gas and around 25% of its oil supplies last year. Norway has replaced the UK’s North Sea as the primary source of gas, with the UK’s production expected to fall further by 70% over the next decade. As Norwegian output wane, experts warn that this may create a reliance on Russia’s gas, raising geo-political alarm across Europe. Investment in exploration and infrastructure is seen as critical to mitigate the decline, but with Norway's political landscape shifting towards greener policies and a commitment to reducing fossil fuel production, the future of oil and gas output in the country remains uncertain. The ongoing debate within Norway’s political circles about how quickly to transition from fossil fuels reflects a broader challenge facing many nations as they balance energy needs with environmental goals. As the situation develops, both British and Norwegian leaders will need to collaborate to ensure energy security in the face of potentially dwindling supplies.